Question

The Owner of a large chain restaurant with 1,200 employees estimates that about 250 employees will ask for winter vacation. A random sample of 40 employees show that 8 of them will ask for the time off . Determine whether the owner's estimate is likely to be accurate

Answer 1

He is likely to be accurate.

Explanation:

An estimate is a value that is close to the true or actual value. Usually, a sample from a smaller group is projected into a larger population. To crosscheck the trueness of the estimate, we compare the small sample to the large sample thus;

If 40 employees = 8 applicants for vacation

1200 employees = ? applicants for vacation

Cross multiplying the above gives;

1200 * 8

40

= 9600/40

= 240 applicants for vacation.

The figure 240 is close to the owner's estimate of 250.